Top executives at Abercrombie & Fitch Co. and American Eagle Outfitters Inc. took major pay cuts in 2007, according to U.S. Securities and Exchange Commission filings.
This story first appeared in the May 12, 2008 issue of WWD. Subscribe Today.
Total compensation for Michael Jeffries, chairman and chief executive officer at Abercrombie & Fitch, plunged 56.3 percent to $11.4 million, compared with $26.2 million in 2006. His pay package included a base salary of $1.5 million, stock and option awards of $5.1 million and $1.4 million in “other compensation.” Jeffries’ take included $656,545 for personal use of an airplane.
A big part of the ceo’s year-over-year decrease came from option awards, which fell to $9,543 from $8.4 million. Jeffries also saw slower growth in the area of pension and deferred compensation, which added $1.5 million to his compensation in 2007, down from $6.7 million a year earlier.
The company said overall base salaries for executives increased an average of 4.7 percent. The pay boosts were based on executives’ performance ratings, which were determined by Jeffries.
James O’Donnell, principal executive officer at American Eagle, earned a total compensation of $11.9 million, a 21 percent decrease from $15.3 million in 2006. His pay package included a base salary of $1.4 million, stock and options awards of $8.8 million and $41,308 in “other compensation.” O’Donnell spent $15,250 for car use and $5,222 on club membership.
Meanwhile, Abercrombie continues to advance its international agenda. The company said Friday that it will open a flagship at Kobmagergade 11, Copenhagen, in 2009. This will be the company’s second flagship in Europe, following the 2007 opening in London. Abercrombie said it is “in the process of securing locations in Italy, France, Germany, Spain and Sweden.” The company plans to open its first flagship in Asia, in Tokyo’s Ginza district, in late 2009.
The 16,000-square-foot Copenhagen flagship, which will be in a 1910 neoclassical structure typically found in Danish architecture, will be designed by Selldorf Architects and its principal Annabelle Selldorf. Abercrombie & Fitch was represented by its exclusive European real estate consultant, PBS Real Estate LLC, and its principal Laura Pomerantz.
Outside the U.S., Abercrombie operates three Abercrombie & Fitch stores and three Hollister Co. stores in Canada, in addition to the London flagship.